What is the maximum Loan-to-Value allowed on an investor property?
Typically the answer is 75% for Commercial Investment and 80% for Multi-family on purchases, however this is based upon several critical factors with the most critical being that the property itself must support the loan amount based on its actual historic income and expenses. Click on this link to our “Tools” page for more information and tools that will help you determine what size loan a property may support. Additionally, LTV will be based on the LOWER OF acquisition price or third party appraisal engaged by the lender. In most cases “appreciated value” will not be considered until the property has seasoned for 3-5 years under the current ownership.
